ARCHIVED CD 2009-022
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October 21, 2009
SUBJECT: Isolated Posts and Government Housing Directive
1.1. The purpose of this directive is to inform compensation advisors of changes to the National Joint Council's (NJC) Isolated Posts and Government Housing Directive (IPGHD).
1.2. This directive should be read in conjunction with Compensation Directive 2009-012, entitled "Isolated Posts and Government Housing Directive" and Treasury Board Secretariat (TBS), Information Notice 2009-10-01, entitled "Annual Update to the Isolated Posts and Government Housing Directive - Appendices A, B, C, K-1, K-2".
2.1 Environment Allowance (EA)
The Treasury Board Secretariat (TBS) has approved a rate increase for the EA (entitlement code 297), retroactive to August 1, 2009.
2.2 Living Cost Differential (LCD)
TBS has approved a rate increase for the LCD (entitlement code 101), retroactive to August 1, 2009.
2.3 Shelter Cost Differential (SCD)
TBS has adjusted the SCD (entitlement code 046) rates, retroactive to August 1, 2009.
2.4 Fuel and Utilities Differential (F&UD)
TBS has also announced that, effective October 1, 2008, the F&UD (entitlement code 102) levels of a number of locations have been revised.
Please note that the rates for this allowance remain the same.
3.1. EA, LCD and SCD
Compensation advisors are required to amend the ongoing rate and pay the retroactivity for the EA (entitlement code 297), the LCD (entitlement code 101) and the SCD (entitlement code 046) by completing an "Entitlement Amend" (ENA - Pay Action Code (PAC) 18A) transaction, effective August 1, 2009. Please refer to the Personnel-Pay Input Manual (PPIM) sections 14-6-2 and 4-4-18-5-1 for instructions.
The F&UD levels of a number of locations have been revised, but the rates remain the same. Employees must receive a four month notification (an email message is acceptable) of any reduction to a classification as established in Section 2.12 of the IPGHD. Therefore, a notice should be sent out immediately and not later than December 1, 2009, to all affected employees.
The total amount of the reduction in the F&UD resulting from a reduction in the classification shall be effective on the first day of the fourth calendar month after the month in which written notice was received. Compensation advisors must process any changes in rate for the F&UD (entitlement code 102), using the "Entitlement Amend" (ENA - PAC 18A) transaction.
3.3. The allowances of the IPGHD do not form part of salary and are not to be used in calculating the 4% vacation pay or the premium pay in lieu of statutory holidays for part-time employees.
3.4. All allowances under the IPGHD are subject to income tax deductions, to the Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) contributions, and to the Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) deductions. However, they are not subject to the Public Service pension plan contributions.
3.5. Please note that, for part-time employees, the Regional Pay System (RPS) will automatically prorate the IPGHD allowances mentioned in this directive.
3.6. For partial months of eligibility, all allowances are to be calculated in the same manner as salaries, i.e. based on compensated days.
4.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Accounting, Banking and Compensation
Reference(s): ENT 046, 101, 102, 297 and CJA 9010-2
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